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Thank you very much for the response! From a practical point of view, would that mean to change the model to a 2-level model with time as level 1 and firms as level 2 and then adding i.region as an additional explanatory variable to the fixed part of the model?

Dear all, I have a longitudinal dataset of firms and apply a 3-level logistic regression with time as level 1, firms as level 2 and regions as level 3 using Bayesian methods with the runmlwin command in Stata. I now wonder how I can account for possible endogeneity issues in my model that might aris...